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FPSO sector to account for 35 per cent of offshore developments - expert

18th February 2013

35 per cent of offshore developments to be claimed by FPSO industry where Brazil remains king, as only way to meet growing energy demand is to progress ‘full-speed’ on offshore plays

FPSO sector to account for 35 per cent of offshore developments - expert
A further 16.5 million bpd will come from global offshore developments, says Ryastad Energy partner Anders Hannevik

Roughly 35 per cent of offshore developments will be accounted for by the growing FPSO industry, with Brazil reinstating its leading position in that market, Anders Hannevik, partner at energy analysis firm Ryastad Energy said at BIS Group's Advanced FPSO Forum in London this month.

The countries where the main offshore developments are expected to take place are Brazil, Norway, Angola, US, Nigeria and Saudi Arabia.

As for oil demand, the general consensus among analysts is that by 2035 the global demand for oil is going to increase by 32-35 per cent, while the IEA predicts total demand by 2020 to reach 95 million barrels per day (bpd) of oil.

The industry is currently producing around 90 million bpd of oil from a large number of fields. By 2020, it is expected that these fields will have declined to roughly 70 million bpd. As such, in order to meet the projected demand, the global oil and gas industry must develop close to 30 million bpd, Hannevik projected.

“This is going to be a stretch,” Hannevik said. “We predict that a further 8 million bpd will come from new onshore fields, 4.3 million bpd from tight and shale oil, 4 million bpd from oil sands and heavy oil and then 16.5 million will be offshore. So for us, the only way to meet this demand is to really continue full-speed on offshore developments.”